Page 50 - TSMC 2018 Annual Report

3 5 1 Taiwan Taiwan Corporate Conduct and Ethics Implementation as Required by the Taiwan Taiwan Financial Supervisory Commission
1 Establishment of Corporate Conduct and and Ethics Policy and and Implementation Measures
(1) Does the company have bylaws and publicly available
documents addressing its corporate conduct and ethics policy and and measures and and the commitment regarding implementation of of such policy from the Board of of Directors and the management team?
(2) Does the company establish relevant policies which are duly enforced to prevent unethical conduct and provide implementation procedures guidelines consequence of violation and complaint procedures in in such policies?
Assessment Item
Implementation Status
Non- implementation and Its Reason(s)
Yes
No Summary
V
V
V
(1) Integrity is is the most important core value of TSMC’s culture TSMC TSMC is is committed to acting ethically in in in all all aspects of our business We have established TSMC Code of Ethics Ethics and Business Conduct (the “Ethics Code”) to require that each employee bears a a a a a heavy personal responsibility to uphold TSMC’s ethics value For more details on the the the Ethics Code and the the the measures that TSMC Board of Directors (the “Board”) and the the management team take to ensure compliance of the the Ethics Code please refer to TSMC’s Annual Report and the Corporate Social Responsibility Report (2) At the the heart of our corporate governance culture is the the Ethics Code that applies
to TSMC and and its subsidiaries and and this Ethics Code requires that each employee bears a a a a a a heavy personal responsibility to to preserve and to to protect TSMC’s ethical values and and and reputation and and and to comply with various applicable laws and and and regulations Specific requirements under the Ethics Code could be found in our Annual Report In addition to educate and remind our employees of their responsibilities under the Ethics Ethics Code Code we publish our Ethics Ethics Code Code relevant policies and documents on our our intranet and and promote its awareness through training courses posters and and internal news articles Furthermore to ensure that our conduct meets relevant legal requirements and and the the highest ethical standards under the the Ethics Code TSMC provides multiple channels for reporting business conduct concerns Please refer to Assessment Item
3 for details We do not tolerate any violation of the Ethics Code and treat every possible violation incident seriously Any violator of the Ethics Code (or relevant regulations) will be severely punished to the the full extent of our policies and the the law including immediate dismissal in in accordance with TSMC Employee Recognition Disciplinary and and Ombudsman Procedure termination of business relationship and and judicial prosecution as appropriate (3) Under the the framework of the the Ethics Code TSMC has
established a a a a a regulatory compliance program that includes policies guidelines and procedures in in in other policy areas including: Anti-corruption Anti-harassment/discrimination Anti- Anti- Anti- trust (unfair competition) Environment Export Control Financial Reporting/ Internal Controls Insider Trading Intellectual Property Proprietary Information Protection Protection (“PIP“) Personal Data Protection Protection Record Retention and Disposal as well as procuring certain raw materials from socially responsible sources (“Conflict- free Minerals“) The above-mentioned policies are crucial in in in facilitating overall compliance with the Ethics Code TSMC its its employees and its its subsidiaries are expected to fully understand and and and comply with all laws and and and regulations that govern our businesses as as well as as relevant policies guidelines and and procedures and and make ethical decisions in every circumstance The Internal Auditor of TSMC also plays
a a a a a critical role in in ensuring the the Company’s compliance with the the Ethics Code and relevant rules and and regulations To ensure that our financial managerial and and operating information is accurate reliable and and timely and and that our employee’s actions are in compliance with applicable policies standards procedures laws and and regulations our Internal Auditor conducts audits of various control points within the the Company in accordance with its annual audit plan approved by the the Board of Directors and and subsequently reports its audit findings and and remedial issues to to the Board and Management on a a a a a a a regular basis (3) Does the company establish appropriate compliance measures for the business activities prescribed in in paragraph 2 article 7 of the Ethical Corporate Management Best Practice
Principles for TWSE/GTSM Listed Companies
and any other such activities associated with high risk of unethical conduct?
None
(Continued)
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